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Markets in the US are closed today, however the world continues to function none the less.

Yesterday, the coup in Egypt did come to conclusion with the current leader being ousted by the military in what so far has been a relatively peaceful takeover. We shall see as the days progress as to how the transition to the temporary government will be accepted. An interim leader has been put into place and elections will be held in the months to come to replace the current leader. As you are aware, oil has risen in the past week on the news and this morning has sold off slightly now that the coup has occurred. This is a fluid situation and we will continue to monitor closely.

In Asia, the Bank of Japan President claimed some success for the central bank’s aggressive monetary stimulus, saying that the economy is on track to a steady recovery with signs inflation starting to return. Markets there were flat overnight. China was up about 1%.

In Europe, Mario Draghi gave his monthly presser this morning and suggested again stimulus will not be reduced any time soon making sure not to make the same mistake that the Fed made a week or so ago. He also mentioned that there is continued improvement in the Euro zone economies, however there is still considerable risk as to the duration of the recovery. Markets in the region are on board with his comments this morning as
markets in the region are up 2.75%.

Mark Carney gave his first address to the UK parliament today as Governor of the Bank of England and maintained rates and asset purchases as is. Notably his comments did seem to be more succinct and concise as was the case when he had the job here.

As I mentioned US markets are closed today, but electronic futures are still trading and up about 1%. Tomorrow we get the June Non-Farm Payrolls in the US and the estimate is for around 170000 new jobs.

Canadian markets are set to open higher this morning by about a half a point.

Gold is selling off this morning down a couple of bucks to 1248, oils is down 16 cents to 101.08 and the loonie is stronger by a quarter to 95.08

I will be on the road tomorrow and will be sending in my comments remotely to Paula to forward to all after the employment numbers are released. I will be in contact throughout the day.